When should I issue a UK invoice?
C
Chieh is the founder of createinvoice.uk, where he shares practical insights on invoicing and business finance. With a focus on clarity and compliance, he helps readers understand how to set up invoice the right way.
Published on 20 September 2025
When should I issue a UK invoice? The best practice is to issue the invoice at the point of supply or immediately after the payment terms are agreed.
So how does HMRC define the timeline for issuing an invoice?
VAT invoices
HMRC’s rules on VAT invoices are strict:
- Goods: You must issue a VAT invoice within 30 days of the goods being supplied (or of receiving payment, if earlier).
- Services: You must issue a VAT invoice within 30 days of the service being completed (or of receiving payment, if earlier).
- Advance payments or deposits: If you receive money before the supply, that creates the “tax point.” You must issue the VAT invoice within 30 days of receiving the payment.
Please refer to VAT invoice: issuing — Time limit for issuing VAT invoices.
If you’re not VAT-registered
- You’re not legally required to issue invoices to consumers; a receipt is sufficient.
- For B2B transactions (especially when the customer is a company), you’re generally expected to issue an invoice for the customer’s records.
If you have more questions, please contact us.
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